CHAPTER : 14

ACCOUNTS FROM INCOMPLETE RECORDS (SINGLE ENTRY

SYSTEM)

Typology of Questions
R – Remembering

U- Understanding

A – Application

A&E- Analysis & Evaluation

FILL IN THE BLANKS

1.Single entry system is not supported by …………….act Companies act 2013

2. Single entry system is generally followed by ……. Individuals
3.Total credit purchases can be ascertained from….………. a/c (Part of
Current liabilities) Trade Payables a/c
4. Small business generally use ……..method for accounting because it is. Single entry
5. Single entry system gives…………….. Profit & loss/ financial position
of firm. Inaccurate/Incorrect
6 ……system does not present actual financial position of business Single entry
7.Total credit sales can be ascertained from ………..a/c (Part of Current
Assets) Trade receivable
8. …….principle is followed by single entry system. Money measurement
9. Single entry system of accounting is comparatively ……… expensive. Less
10. Trade payable account is of ………nature. Personal
11. Capital 6,00,000 ,Liability is rs.235000 then Assets=………. 835000
12. Credit sales during the year is Rs. 5000 , balance of opening trade
receivables was Rs.3000 ,goods of Rs. 500 returned by customer as
defective, closing trade receivables will be ………. 7,500
13. Total Purchases during the year is Rs ……….if
- cash purchases is 150% of credit purchases,
- Payment made to creditors during the year Rs.50,000
Balance of opening creditors a is Rs.50,000 more than closing creditors. 2,50,000
14. Opening and closing balance of Mr. X’s capital a/c is Rs.3 laces and
Rs. 5 laces respectively. Total profit of Rs. 2.5 laces earned and 50,000

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 Rs…………..was withdrawn during the year.
15. Rupesh started business with cash rs.10,000,on 1st july he borrowed
rs,5000 from his friend, additional capital introduced by him rs.6000
during the year and he earn profit of rs. 4000 during the year then total
assets at the end of the year is……. 25,000
16. Gross profit of Mahesh is rs.35000 and cost of goods sold is rs. 65000,
cash is 2/3 of credit sales then credit sales is rs…… 60,000
17. On March 31, 2018 assets and liabilities of Mr. Shyam were 10,00,000
and Rs. 1,50,000 respectively . On March 31, 2019 assets and
liabilities are Rs.12,00,000 and Rs.50,000 respectively, Total Drawing
during the year 2018-19 were Rs. 40,000 .Profit earned by shyam
during the year is …….. 3,40,000

TRUE & FALSE

REMEMBERING :-
1. Dual aspect is completely follow in single entry system. False
2. In single entry system a firm has fully control on assets. False

UNDERSTANDING:-
3. Prepare financial statement by putting the accounting records I proper order is called
conversion method. True
4. To compute capital amount in single entry system statement of affair is to be prepared. True
5. In single entry system accounting principles are perfectly followed. False
6. Total debtor account prepare for ascertaining credit purchase. False
7. Accurate profit and loss can be ascertained by single entry system. False

APPLICATION:-
8. Credit purchase can be ascertained as the as the balancing figure in total debtor account.
False
9. Big business houses usually use single entry system. False
10. Single entry system is a unsystematic method of recording. True
11. Money measurement concept is followed in single entry system. True
12. Accrual concept is strictly followed in single entry system. False

Analysis & evaluation

13. Xy & co is a firm, following single entry system and company rule 2013 apply on such firm.
False

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14. In x & co. single accounting system is follow, 2 packets out of 500 packets were lost by theft.
But x & co can easily find the lost unit. False
15. XY & Co is a big firm and single entry system will be the best option for accounting. False
16. Ram keep his book on single entry system & he pays tax on the basis of his books and income
Tax accepted his calculation. False
17. Drawing is added in the opening capital while computing closing capital. False
Capital closing 6,00,000
Drawings 75,000
Fresh capital 2,10,000
Profit 1,40,000
Capital opening will be 324000. False

MATCH THE FOLLOWING

REMEMBRING
1. Which Act Doesn’t supported Accounting from Incomplete Records is not supported
a. Negotiable Instrument Act 1881
b. Partnership Act 1932
c. Contract Act 1872
d. Companies act 2013 (D)
2. Generally accounts under single entry system maintained by
a. Sole trader
b. Company
c. Firm
d. H.U.F (A)
3. Single entry system of book keeping is
a. Inaccurate
b. Unscientific
c. Unsystematic
d. All of the above (D)

UNDERSTANDING:-
4. Credit purchase can be ascertained as the balancing figure of accounts
a. Total creditors account
b. Total debtors accounts
c. Cash account
d. Statement of affair (A)
5. What is the reason behind using single entry system

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 a. Less expensive
b. Suitable for small concern
c. Simple method
d. All of the above (D)
6. What is the feature of single entry system
a. Lack of uniformity
b. Suitability
c. Depends on original voucher
d. All of the above. (D)
7. Credit sale can be ascertained as the balancing figure of accounts
a. Total creditors account
b. Total debtors accounts
c. Cash account
d. Statement of affair (B)
8. Limitation of accounting from incomplete records
a. Unscientific system
b. Difficulty in preparing final account
c. Preparation of trial balance is not possible
d. All of the above (D)
9. When closing capital is less than opening capital then result will be:
a. Profit
b. Loss
c. No profit no loss
d. Loss if there is no drawings (D)
10. When closing capital is more than opening capital then result will be:
a. Profit
b. Loss
c. No profit no loss
d. Profit if there no additional capital is introduced (D)
11. Single entry system is less expensive system as compared to double entry system.
a. True
b. False
c. Both a and b are true
d. Both a and b are false. (A)
12. Which principle is not followed by the single entry system
a. Dual aspects
b. Matching concept
c. Revenue recognition
d. All of the above (D)

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APPLICATION:-
13. Accounting equation is
a. Assets = Liabilities +Capital
b. Assets = Liabilities - Capital
c. Liabilities = Assets –Capital
d. Capital = Assets + Liabilities (A)
14. Capital 6,00,00 Liability is rs.23500 then Assets=……….
a. Rs.83,500
b. Rs. 36,500
c. Rs. 60,000
d. Rs. 23500 (A)
15. In the single entry which method is used to ascertain profit and loss.
a. Statement of affairs method
b. Conversion method
c. A and B both
d. None of the above (C)

16. Which accounting principle is certainly followed under single entry system as well as
double entry system
a. Money measurement system
b. Dual aspect
c. Matching
d. None of the above (A)

17. Which one of the following is the correct formula of COGS.

a. Opening stock+ purchase + direct expenses - closing stock
b. Opening stock - purchase+ direct expenses - closing stock
c. Opening stock + purchase + direct expenses + closing stock
d. All of the above. (A)

18. Which one of the following is the correct formula of ascertaining profit or loss.
a. Closing capital + Drawing + additional capital – opening capital
b. Closing capital + Drawing - additional capital – opening capital
c. Closing capital - Drawing + additional capital – opening capital
d. Closing capital + Drawing + additional capital + opening capital (B)

19. Ram started business with cash rs.10, 000,on 1st July he borrowed Rs.5000 from his friend
additional capital introduced by him Rs.6000 during the year and he earn profit of
Rs.4,000 during the year then total assets at the end of the year is
a. Rs.10,000

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 b. Rs.15,000
c. Rs.20,000
d. Rs.25000
20. On March 31, 2018 assets and liabilities of Mr. Shyam were Rs.10, 00,000 and
Rs.1,50,000 respectively . On March 31, 2019 assets and liabilities are Rs.12,00,000 and
Rs.50,000 respectively , Total Drawing during the year 2018-19 were Rs. 40,000 .Profit
earned by shyam during the year is ……..
a. 3,40,000
b. 3,50,000
c. 3,00,000
d. None of the above (A)

21. Opening and closing balance of Mr. X’s capital a/c is Rs.6, 00,000 and Rs.10, 00,000
respectively. Total profit of Rs.5,00,000 earned, Drawings during the year were
a. Rs.50,000
b. Rs.1,00,000
c. Rs.4,00,000
d. Rs.5,00,000 (B)

22. If cash purchases is 150% of credit purchases, Payment made to creditors during the year
Rs.50, 000 Balance of opening creditors is Rs.50, 000 more than closing creditors. Total
purchase during the year is….
a. Rs.1, 50,000
b. Rs.2, 00,000
c. Rs.2,50,000
d. Rs.3,00,000 (C)

MATCH THE FOLLOWING

REMEMBERING:-
1.
1. Credit purchase, during the year is a) Total asset A/C
ascertained by preparing
2. Credit sales during the year is ascertained b) Total debtors A/C
by preparing
3.Opening capital is ascertained by preparing c) Total liabilities A/C
d) Total creditors A/C
e) Opening statement of affairs
Ans- D,B& E

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2.
i) In single entry system only such transactions a) Real A/C
are properly maintained
ii) In double entry system the accounts are b) Nominal A/C
properly maintained
c) Personal A/C
d) All the above
Ans- C & D
UNDERSTANDING:-
3.
i) Single entry system is generally used by a) Company
ii) Principle is not followed by single entry b) Matching principle
system
c) Dual aspect principle
d) Small traders
Ans- D & C
4.
i) Single entry system does not reflect a) Proper rules and principles
ii) Single entry system does not follow b) True financial position
c) Internal Check System
Ans- B & A
5.
i) In single entry system which accounts are a) Real Account
not prepared
ii) In single entry system the accounts are not b) Personal Account
accepted by
c) Court of Law
Ans- A & C
APPLICATION:-
6.
i) From single entry system it is not always a) Balance sheet
possible to prepare
ii) From incomplete records we cannot find b) Trial Balance
c) Correct P & L
d) Capital A/C
Ans- B & C
7.
i) Incomplete records follow one GAAP a) Forecasting
ii) Incomplete records does not suitable for b) Money measurement
c) Dual Aspect
Ans- B & A

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8.
i) Companies registered under the companies a) Accounting principles
act does not follow
ii) Sole trader are not required to follow b) Incomplete records
c) Partnership Rules

Ans- B & A
`
9. Capital Rs 6,00,000 Creditors Rs 2,00,000 Outstanding Rent Rs 35,000 what will be the
Assets if-
i) there is cash balance of Rs 35000 a) Rs 3,65,000
ii) if there is no other information b) Rs 8,35,000
c) Rs 8,00,000
Ans C & B
ANALYSIS & EVALUATION:-

10.
i) If the rate of gross profit is 25% of sales and a) 16,667
COGS is Rs. 1,00,000
ii) If the rate of gross profit is 20% of COGS b) 1,20,000
and sales are Rs. 1,00,000
c) 33,333
Ans- C & A

11.
i) Gross profit of Mahesh is rs.35000 and cost a) 50,000
of goods sold is rs.65000, cash is 2/3 of credit
sales then credit sales is rs……
ii) Vandna shows inability to pay her b) 60,000
acceptance of Rs…………and accepted a new
bill of rs. 11,165 along with interest @6% (due
after 3 months)
c) 11,000
Ans- B & C
12.
i) Sales are calculated by adding a) cash sales and received from debtors
ii) From incomplete records it is possible to b) cash sales + credit sales
prepare
c) Ledger account
d) Statement of affairs
Ans- B & D

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